Changing the Pricing of a Subscription

Edit Subscription's Pricing Info


In Cloud BSS, you can change the pricing of an active subscription for the current billing cycle or the next billing cycle. The options you can change are the subscription’s price list/user-defined unit price/subscription discount/billing cycle. The changes can be performed by selecting from the subscription details page the action “Edit Pricing Info“. Please note that different options and rules are applicable for different subscription types (i.e., normal, price-protected, automatic pricing retrieval from external systems).

Change the Pricing for the Current Billing Cycle


When you select this option, the system will apply the changes from the beginning of the current billing cycle (e.g., from 1st day of the month) and the following business rules will be applied:

  • If the customer changes the subscription price, the system will get the following price(per case):
    • For a normal subscription: the current price of the product, not the price that the price list might have had at the beginning of the current billing cycle. 
      (If the edit was done to the Unit Price field or the Discount percentage field, then the subscription will change its price based on those prices with the label "User Priced" or "User Discount", respectively. Please note that the "User Priced" supersedes the "User Discount" option.)
    • For a price-protected subscription: the Price Protected price of the subscription.

    • For an external pricing subscription (without Price Protection): the saved price of the current billing cycle for the subscription that was retrieved from the external pricing system.

  • If the customer wants to change the billing cycle:
    • Of the normal subscription (whenever possible), they can only select a bigger period (e.g., to convert a monthly subscription to a yearly one), he cannot apply for the current billing cycle for a smaller period.
    • Of a price-protected subscription, they cannot alter either the Unit or the Billing Option, since these options are not allowed to be changed during the current billing cycle.
    • Of a subscription that receives its pricing automatically from an external system, they cannot alter either the Unit or the Billing Option, since these options are not allowed to be changed during the current billing cycle.
  • If there are scheduled price changes for the next billing cycle, these requests will be canceled.
  • For subscriptions with installments, when changing the prices, all remaining installments will be recalculated and all future invoices will be issued based on the new prices. Invoices which have already been issued are unaffected.

Option Unavailability

You will not be able to change the pricing for the current billing cycle, :

  • If there are pending invoices for:
    • Changes in the subscription quantity,
    • Changes in the add-ons quantity,
    • Upgrade or downgrade actions. 
  • If there has been a quantity update and the subscription is not price protected (for subscriptions with installments).

Analytic Table with Invoice Cases for Allowing or Forbidding the Use of 'Current Billing Cycle' Changes

Installments

Create Subscription Invoice

Quantity Change Invoice

(same day)
Quantity Change Invoice

(other day)
Allowance of utilizing the option “Apply to the current billing cycle”
Pending--
Generated--
PendingPending-
PendingGenerated-
“No Billing changes can be applied in the current billing cycle as during this cycle there is an action that has been invoiced.
GeneratedPending-
No Billing changes can be applied in this cycle until all pending invoices are generated.”
GeneratedGenerated-
Pending-Pending
“No Billing changes can be applied in the current billing cycle as during this cycle there is an action that has been invoiced.”
Pending-Generated
“No Billing changes can be applied in the current billing cycle as during this cycle there is an action that has been invoiced.”
Generated-Pending
“No Billing changes can be applied in the current billing cycle as during this cycle there is an action that has been invoiced.”
Generated-Generated
“No Billing changes can be applied in the current billing cycle as during this cycle there is an action that has been invoiced.”
Without price protection-

Not allowed, because the price might be updated by quantity

Without price protection-

With price protection

--


In the (forbidding) scenarios, the option will be locked, and the following warning will be displayed:

For unlocking the current billing cycle option, concerning only the case with the pending invoices, you need to generate manually the pending invoices first. 


Change the Pricing for the Next Billing Cycle


When you select this option, the system will apply the changes when the subscription will be renewed (e.g., from the 1st day of the next month), and the following business rules will be applied:

  • If the customer changes the subscription price list, the system will get the price that the price list will have when the subscription will be renewed.
  • If the customer wants to change the billing cycle of the subscription, he can select either a bigger period (e.g., to convert a monthly subscription to a yearly one) or a smaller period (e.g. to convert a yearly subscription to a monthly one).


Managing the Pricing for Subscriptions with Installments

When you select this option, the system will apply the changes when the subscription will be renewed (e.g., from the 1st day of the next month), However, the difference in this case is the fact that the due to the billing nature of subscriptions with installments, the changes can only occur after the current billing cycle and that is why the option of "Apply to the current billing cycle" is deactivated and locked by default. Also, for the same reason, the options "Unit" and "Billing Option" are also locked by default. Therefore, the following business rules can be applied:

  • If the customer changes the subscription price list, the system will get the price that the price list will have when the subscription will be renewed.*
  • If the customer changes the unit price, the new unit price will be utilized by the system for the subscription after its renewal. However, the field is not editable if the product has active its Price Protection.*
  • If the customer changes the discount percentage, the system will utilize this new percentage for the subscription after its renewal.*

*The BSS user can choose to change the values of either the Price List field or the Unit Price field or the Discount field, since they are mutually excluded.

After defining the changes, the BSS user has to click on the Save button for those changes to become effective immediately after the renewal of the subscription's billing cycle.


Informative Ribbon for Scheduled Pricing Change Requests 


Such requests are logged as scheduled pricing change requests and are accessible through the subscription details page. The customer administrator has the option to update or cancel this request at any time during the current billing cycle (i.e., before the system renews the subscription and applies the scheduled request)


A subscription with a scheduled pricing change:

If, after the submission of the request, the subscription status changes (i.e., the subscription has been canceled), the system will do the following:

  • Subscription Cancellation: The scheduled changes will be canceled.
  • Subscription is set to inactive: The scheduled changes will be canceled.
  • Subscription Suspension: The scheduled changes will remain active.
  • Subscription upgrade/downgrade. The scheduled changes will be canceled.


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